Brisbane is Australia’s new luxury market growth capital

BRISBANE has been named Australia’s top capital for price growth in the luxury residential market for the first time, outshining Sydney and Melbourne and some of the world’s wealthiest cities.

The latest Knight Frank Prime Global Index report has revealed that the value of Brisbane’s prestige market jumped 3.2 per cent over the past 12 months, earning the city the 14th spot in global rankings.

Brisbane first entered the global top 45 at 19th spot in the first quarter of 2018, moving to 17th spot by the fourth quarter last year, one spot behind Sydney.

In the latest report, the river city has leapfrogged Sydney, with Sydney now in 18th spot and luxury market that has grown by 2.4 per cent, while Melbourne, which is in 22nd position, recorded just 1.8 per cent growth — on par with Perth.

“Brisbane prime properties have been popular with families migrating from Sydney and Melbourne, as well as local downsizers looking for properties with low or no maintenance and a high standard of amenities to enjoy,” Knight Frank’s Australian head of residential research Michelle Ciesielski said.

“Given the relative value to other east coast cities, we expect the Brisbane prime market to record a similar annual growth by the year’s end.”

The index tracks the movement in prime residential prices (the top 5 per cent of the housing market in most cities, by value) across 45 cities worldwide.

Berlin and Moscow came out on top, recording growth of 14.1 per cent and 12 per cent respectively.

Other cities to rank higher than Brisbane included Tokyo, Paris, Delhi Beijing and Singapore, which recorded growth of 3.6 per cent — 0.4 per cent more than Brisbane.

But Brisbane outranked the likes of Miami — the top performer in the US — and Los Angeles and New York.

In terms of price growth, Brisbane also exceeded a number of cities within the European Union including Monaco, Vienna, Milan and Stockholm, and London, which has been under the Brexit cloud.

New York may have the Statue of Liberty but Brisbane has better weather, and a King Wally statue (see below) (Photo by TIMOTHY A. CLARY / AFP)

Queenslander!!!! AAP/David Clark

The report also predicted that the number of millionaires being created in Brisbane would triple — from one to three daily — over the next five years, creating an even bigger pool of high-net worth individuals clambering for high-end, luxury housing stock.

Ms Ciesielski said the rise in the number of local millionaires could be attributed to expats returning home and interstate migrators making the move to the Sunshine State seeking a better lifestyle.

But she said the projection was for Brisbane only, and when places like the Gold Coast and Sunshine Coast and the state’s resource-rich regions were taken in to account, that number was likely “much higher”.

Place Bulimba agent Sarah Hackett said she was not surprised by the report.

Place Bulimba managing director Sarah Hackett

“I am cautious but optimistic because everything I have currently has offers,” she said.

Aria Development boss Tim Forrester sold his riverfront home at 30 Wendell Street, Norman Park for $6 million. Supplied

Ms Hackett said buyers and sellers were more optimistic than they were last year, when concerns about bank lending and the royal commission peaked.

She said banks were “back lending and moving faster” which was fuelling that confidence.

A bunch of Queenslanders after work. Pics Adam Head

“We are also seeing considerable interest from the expat and interstate market, and I am dealing with, on average, two families a week, including one family in London who viewed a house via Facetime and will likely make an offer,” she said.

“It’s all about lifestyle. Our lifestyle is a huge marketing tool.”

A bunch of cranky commuters in the southern capitals just trying to leave work.

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